Getting Credit Soon Right After Filing for Bankruptcy

Trying to get credit after you seek bankruptcy relief has been long reported as being extremely difficult, but it's not absolutely impossible.

When applying for credit you need to be upfront with your prior financial problems, which includes bankruptcy, but some creditors look at the reason why someone declared personal bankruptcy and make allowances.

Home interest rates for someone that has gone bankrupt will probably be higher, usually at the highest legally allowed limit. This can make repaying the credit lent just a little tricky. However, creditors commonly don't mind given that they also know there is a time limit in which you could claim bankruptcy again.

Of course, if you go delinquent on the loan then you will be forced to pay and they are going to have the law on their side.

So, most of the high risk creditors have virtually no problem taking on a consumer who has just recently filed for individual bankruptcy, as they know you will be made to pay no matter what.

After you go through individual bankruptcy, your credit will be minimal and you'll have to start rebuilding.

Keep in mind that your bankruptcy will stay on your credit report for 10 years and any positive notations made in your report will show upcoming creditors that you're making the right steps to get your financial life back.

Several credit card companies may be ready to take a risk on you fairly immediately after your personal bankruptcy, but the high monthly interest might not be worth the effort.

Some companies offer pre-paid credit cards that work similarily as your bank’s debit card, however in these situations the businesses supplying them usually report your positive results to the credit bureau.

You will have to open a merchant account with them and your available credit will be based on the account balance. You need to make monthly premiums and maintain the first balance in your accounts, but the appeal is your payments will be given to the credit bureaus assisting you to rebuild your credit.

Remember, it's a wise idea to start repairing your credit very quickly after you've filed for bankruptcy. However, you'll want to do so in a fashion that doesn't cause you to end up back in the sticky financial circumstances you were in before the bankruptcy process began.

There is absolutely no reason to endure the entire bankruptcy process, only to discover yourself deep in debt once more. Talk with a financial advisor or even your bankruptcy attorney to figure out what the best course of action is for you. Often, they will be happy to give you responsible tips about rebuilding your credit.

Actions Toward Filing Bankruptcy in Oregon

If you are thinking about filing for bankruptcy, it's a pretty major decision. It really is such a big deal, you won't ever want to move forward with bankruptcy unless you positively understand all your options. If you are considering declaring bankruptcy, there are many factors to consider.

The very first decision you must make is whether or not you file Chapter 7 or Chapter 13 bankruptcy. The simple and easy difference is with Chapter 7, the vast majority of your unsecured debts are going to be eliminated, along with particular secured debts. Having said that, your home mortgage and any auto loans will likely result in you being forced to turn them over to the creditor, based on their value.

Of course, in case you have a job you possibly will not be eligible to file for Chapter 7 bankruptcy. If this is the case, your bankruptcy lawyer will help you file for Chapter 13 individual bankruptcy and can help you with any paperwork you should fill out. If you file Chapter 13, your entire debt is totalled, combined and is payed off through a court-appointed trustee.

Typically, you'll have several years to pay your debt off, in timely repayments to the trustee. They will then send the funds to the proper creditors, making your way of life less complicated.

If you file Chapter 13, you can hold your house, your vehicle and any additional secured debts. Late amounts can be included in the amount going into your Chapter 13 processing and will be paid back with the remaining creditors. If you're in property foreclosure or your automobile is about to be repossessed, the personal bankruptcy will stop the action. If your automotive was already repossessed, if you file promptly enough, the collector will have to return the automobile to you.

If you do not make ample money to fulfill the monthly installments, you might not be eligible for Chapter 13 bankruptcy. Only by meeting with a Oregon bankruptcy attorney will you know if you are eligible for either type of bankruptcy. The lawyer, if you choose to rely on them, will handle all of the paperwork and court proceedings in addition to coping with your creditors. Once you have filed for individual bankruptcy, your creditors will stop contacting you.

You may be contemplating doing your individual bankruptcy paperwork yourself, but it's vital you work with a skilled attorney if you're trying to file, because you want to be sure to make no mistakes. Anything as critical as declaring bankruptcy should certainly only be taken care of by consultants in the field, which is why working with a lawyer is a good option for those considering it.

Declaring Personal Bankruptcy in Salem, OR

NWDRLF and Tom McAvity can tell you that all of the same rules for filing personal bankruptcy in Oregon apply in Salem just as they would in Portland and other cities. People often have many of the same questions for Tom McAvity about declaring personal bankruptcy in Portland, so let's take a moment to answer a couple of those questions -- we will get to other important questions in later posts.

The first of two questions about bankruptcy we'll discuss is, "Does filing bankruptcy have a strong negative impact on my credit?" The answer to this question is that most likely, the fact that you are having to file for bankruptcy means that your credit is already in relatively bad standing. While bankruptcy clearly has a short-term negative impact due to the fact that it offers you a brand new clean slate, many who file have recovered a decent credit score within two years or less.

The second common question is, "Will I be able to maintain ownership of property like my home and car if I file for bankruptcy in Salem, OR?" The answer to this question is this: as long as you have equity in the property that is completely exempt you WILL be able to maintain ownership of your home and other larger assets if you file for bankruptcy. You will be held responsible for making payments to the bankruptcy court over the course of a three- to five-year payment plan. Tom McAvity will help you set up this bankruptcy payment plan with a trustee of the court.

What can I do to Prepare for Bankruptcy?

When preparing for bankruptcy, many people have a very hard time. They are scared, they are worried, they feel they will be judged. Know that if you are contemplating bankruptcy that it may be one of the best decisions you will ever make. Thomas McAvity and the law team at the Northwest Debt Relief Law Firm can help you with a fresh start.

Aside from assessing the value of your home and cars, and figuring out what you owe to creditors, you'll want to do a few other things to prepare.

One of the most important pieces of data you will need to have handy for your Portland, Oregon bankruptcy attorney regards whether or not you are on the verge of being foreclosed on your home. If you know that you are mere days or weeks away from a foreclosure, you will need to know the exact date that you will go into default. You may be facing a lawsuit, so alerting Thomas McAvity and the NWDRLF team will help them help you.

Another crucial step you can take to prepare for bankruptcy is simply jotting down a very comprehensive list of the questions you have for your Oregon bankruptcy attorney. Don't hold back here, and remember the old adage: the only stupid questions are the ones that are not asked! So put in on paper -- any and every question you have -- knowing the answers to all of your questions during the pre-bankruptcy process will give you peace of mind.

NWDRLF and bankruptcy attorney Thomas McAvity are ready to serve your bankruptcy needs. Call today for a FREE consultation: 1-866-601-1918.